Regional Airlines Case Study

2833 words 12 pages
Case 2: Regional Airlines

Case 2: Regional Airlines
Case Introduction
A+ for effort, Customer Service Pays for Itself In an extremely regulated and thus relatively uniform industry such as the commercial airline industry, the successful airline is the organization which sets itself apart from the competition. Within an industry that requires customer planning to interface with flight schedules and security measures, a major operational aspect which can aid an airline in gaining an edge on the competition is customer service. The effective consumption of air travel (finding flights, buying tickets, getting through the airport, boarding a plane, and finally reaching the final destination) is not the same simple consumer –supplier
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With only one reservation agent, the probability that a caller will be blocked because of a busy signal is P1 = .4444
Ρo = ( λ / μ ) ο/0! i=0k λ/μ i /i! = ( 16 / 20 ) ο/0! (16/20)o / 0! + (16/20)1 /1! = .5556

Ρ1 = ( λ / μ ) 1/0! i=1k λ/μ 1 /i! = ( 16 / 20 ) 1/0! (16/20)o / 0! + (16/20)1 /1! = .4444
With two reservation agents, the probability that a caller will be blocked because of a busy signal is P2 = .1509.
Ρo = ( λ / μ ) ο/0! i=0k λ/μ i /i! = ( 16 / 20 ) ο/0! (16/20)o / 0! + (16/20)1 /1! + (16/20) 2 /2! = .4717
Ρ1 = ( λ / μ ) ο/0! i=0k λ/μ i /i! = ( 16 / 20 ) ο/1! (16/20)o / 0! + (16/20)1 /1! + (16/20) 2 /2! = .3774
Ρ2 = ( λ / μ ) ο/0! i=0k λ/μ i /i! = ( 16 / 20 ) ο/2! (16/20)o / 0! + (16/20)1 /1! + (16/20) 2 /2! = .1509
Regional Airlines’ current phone reservation system will answer an approximate of 85% of phone calls with two employed reservation agents. However, the other 15% will be blocked because of a busy signal. Customers who do not get a hold of an agent may not call back and contribute to negative customer service reaction and adversely affect the business.
Analysis of Agents Needed
Proposed expanded system will allow callers to wait. Instead of being blocked when all lines are busy, customers can choose to stay on the line and calls will be answered in the order received.
With only one reservation agent for Regional Airlines in the expanded system, 80% (Pw) of

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